MIRA INFORM REPORT

Report Date :

15.12.2014

IDENTIFICATION DETAILS

Name :	MICROMAX SYSTEMS PRIVATE LIMITED
Registered Office :	Malaya House' No.10, Williams Road, Cantonment, Trichy- 620001 Tamil Nadu
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	14.07.1992
Com. Reg. No.:	18-023066
Capital Investment / Paid-up Capital :	Rs.0.680 million
CIN No.: [Company Identification No.]	U29255TN1992PTC023066
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Exporter and Importer of electrical control panel
No. of Employees :	40 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (28)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 45000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Management has reported loss from its operations during FY14. However, trade relations seem to be fair. Business is active. Payment terms are reported as slow but correct. In view of modest scale of operations, the company can be considered for business dealings with caution.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

Not Available

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2014.

INFORMATION PARTED BY

Name :	Mr. Raghwan
Designation :	Senior Executive of Account/Admin
Contact No.:	91-431-4026700
Date :	09.12.2014

LOCATIONS

Registered Office :	Malaya House' No.10, Williams Road, Cantonment, Trichy- 620001 Tamil Nadu, India
Tel. No.:	91-431-4026700/6546442
Fax No.:	91-431-2415573
E-Mail :	accounts@micromaxindia.com
Location :	Rented
Factory :	85/3A, vadya patti village, viralimalat,(21Km), from Trichy-621316, Tamil Nadu, India
Location :	Rented

DIRECTORS

As on 31.03.2014

Name :	Mr. Ponmudi Venkatramana Kannan
Designation :	Managing director
Address :	10 Iyer Thottam, K.K. Nagar P.O., Trichy-620021, Tamil Nadu, India
Date of Birth/Age :	28.12.1953
Date of Appointment :	30.09.2000
DIN No.:	01289632
Name :	Mr. Maheshkannan Kannan
Designation :	Director
Address :	10 Iyer Thottam, K.K. Nagar P.O., Trichy-620021, Tamil Nadu, India
Date of Birth/Age :	06.03.1985
Date of Appointment :	29.09.2012
DIN No.:	06715530

KEY EXECUTIVES

Name :	Mr. Raghwan
Designation :	Senior Executive of Account/Admin

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2014

Names of Shareholders	No. of Shares
Shri. P. V. Kannan	17000
Smt. Vimala Subburaj	100
Smt. G.N.V. Mohan Raju	100
Smt. Hema Kannan	2000
Shri. R. Sekar	6000
Shri. N. Sridhar	1000
M/S. Cethar Limited	33500
Shri. Seshan K. Kumar	100
Shri. R. Thrinavukharasu	100
Shri. S. Srinivasa Raghavan	100
Shri. R. Vnkateshwar	500
Smt. Durga Venkatesh	500
Smt. Gowri Krishnakumar	1000
Shri. Mahesh Kannan	2500
Shri. R. Devarajan	1000
Shri. Megha Kannan	2500
Total	68000

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	49.00
Directors or relatives of Directors	37.00
Others	14.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter and Importer of electrical control panel.
Products :	Not Available
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :
Products :	Finished Good
Countries :	Qatar Ethiopia
Imports :
Products :	Raw Material
Countries :	US
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Suppliers :

Reference :	Siemens Limited, Mumbai
Name of the Person :	Mr. Akhilesh Nayar (Sales Manager)
Contact No.:	91-9444911221
Since How Long Known :	12 years
Experience :	Rs.30.000 millions
Maximum Limit Dealt :	Payment Behavior – Good Marketing Goodwill – Excellent Overall – Good
Remark :	As Claimed by Mr. Nayar (Sales Manager) that the subject company is very good company.

Customers :

Wholesalers and Manufacturer

Reference :	Cethar Limited, Trichy
Name of the Person :	Mr. J. Parmeshwari (Deputy Manger)
Contact No.:	91-9345672477
Since How Long Known :	12 years
Experience :	Rs.50.000 millions
Maximum Limit Dealt :	Payment Behavior – Excellent Marketing Goodwill – Good Overall – Good
Remark :	As Claimed by Mr. J. Parmeshwari (Deputy Manger) that they satisfied with product quality and delivery behavior.

No. of Employees :

40 (Approximately)

Bankers :

Banker Name :	Canara Bank
Branch Address :	Puthur Branch, Truchirapalli, India
Facilities :	Not Divulged
Person Name :	Not Divulged
Contact No.:	Not Divulged
Report :	Not Divulged
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Facilities :

(Rs. In Millions)

SECURED LOAN	As on 31.03.2014	As on 31.03.2013
Long Term Borrowing
Bank Over Draft Account	23.384	20.305
NSIC	3.916	3.585
Total	27.300	23.890

Auditors :
Name :	Sivaswamy and Kumar Chartered Accountant
Address :	43, Officers Colony, Puthur, Tiruchirapalli – 620017, Tamil Nadu, India
PAN No.:	ABWFS5857L

CAPITAL STRUCTURE

As on 30.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
250000	Equity Shares	Rs.10/- each	Rs.2.500 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
68000	Equity Shares	Rs.10/- each	Rs.0.680 million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	0.680	0.680	0.680
(b) Reserves & Surplus	15.056	20.799	19.801
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	15.736	21.479	20.481
(3) Non-Current Liabilities
(a) long-term borrowings	27.300	23.890	18.863
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	13.512	14.018	13.098
(d) long-term provisions	0.261	0.276	0.273
Total Non-current Liabilities (3)	41.073	38.184	32.234
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	15.619	24.286	31.112
(c) Other current liabilities	0.000	0.743	0.629
(d) Short-term provisions	4.811	5.715	4.561
Total Current Liabilities (4)	20.430	30.744	36.302
TOTAL	77.239	90.407	89.017
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	14.934	16.219	10.017
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	14.934	16.219	10.017
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	24.059	38.430	28.031
(c) Trade receivables	27.403	21.866	34.958
(d) Cash and cash equivalents	0.008	0.012	0.021
(e) Short-term loans and advances	1.290	5.257	2.666
(f) Other current assets	9.545	8.623	13.324
Total Current Assets	62.305	74.188	79.000
TOTAL	77.239	90.407	89.017

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	92.124	98.293	140.705
		Other Income	0.498	1.696	1.695
		TOTAL (A)	92.622	99.989	142.400
Less	EXPENSES
		Operating Expenses	91.620	94.096	135.106
		TOTAL (B)	91.620	94.096	135.106
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1.002	5.893	7.294
Less	FINANCIAL EXPENSES (D)		4.866	2.783	2.901
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(3.864)	3.110	4.393
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.878	1.175	1.256
	PROFIT BEFORE TAX (E-F) (G)		(5.742)	1.935	3.137
Less	TAX (H)		0.000	0.697	1.269
	PROFIT AFTER TAX (G-H) (I)		(5.742)	1.238	1.868
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		18.423	17.548	16.265
Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	0.124	0.187
		Dividend	0.000	0.204	0.340
		Tax on Dividend	0.000	0.035	0.058
	BALANCE CARRIED TO THE B/S		12.681	18.423	17.548
	IMPORTS
		Raw Materials	0.098	0.624	0.000
	TOTAL IMPORTS		0.098	0.624	0.000
	Earnings Per Share (Rs.)		84.44	---	----

Expected Sales (2014-15) : Rs.110.000 Millions

The above information has been parted by Mr. Raghuwan (Senior Executive of Account/Admin)

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	(6.23)	1.26	1.33
Operating Profit Margin (PBDIT/Sales)	(%)	1.09	6.00	5.18
Return on Total Assets (PBT/Total Assets}	(%)	(7.43)	2.14	3.52
Return on Investment (ROI) (PBT/Networth)		(0.36)	0.09	0.15
Debt Equity Ratio (Total Debt /Networth)		1.73	1.11	0.92
Current Ratio (Current Asset/Current Liability)		3.05	2.41	2.18

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	0.680	0.680	0.680
Reserves & Surplus	19.801	20.799	15.056
Net worth	20.481	21.479	15.736
long-term borrowings	18.863	23.890	27.300
Short term borrowings	0.000	0.000	0.000
Total borrowings	18.863	23.890	27.300
Debt/Equity ratio	0.921	1.112	1.735

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	140.705	98.293	92.124
		-30.142	-6.276

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	140.705	98.293	92.124
Profit	1.868	1.238	(5.742)
	1.33%	1.26%	(6.23%)

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	-----------
14]	Estimation for coming financial year	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	Yes
18]	Major customers	Yes
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
21]	Market information	-----------
22]	Litigations that the firm / promoter involved in	-----------
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	-----------
26]	Buyer visit details	-----------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	90283030	30/03/2011 *	25,000,000.00	CANARA BANK	PUTHUR BRANCH, PUTHUR, TIRUCHIRAPALLI, Tamil Nadu  - 620017, INDIA	B13032800
2	90282952	24/09/1997	2,500,000.00	CANARA BANK	PUTHUR, TIRUCHIRAPALLI, Tamil Nadu - 620017, INDIA	-
3	90282041	01/10/1997 *	375,000.00	U.C.O. BANK	SOWCARPET BRANCH, 7; DEVARAJA MUDALI STREET, CHENNAI, Tamil Nadu - 600003, INDIA	-
4	90282805	29/09/1995	1,400,000.00	CANARA BANK	PUTHUR, TIRUCHIRAPALLI, Tamil Nadu - 620017, INDIA	-

* Date of charge modification

FIXED ASSETS

• Land and building
• Furniture and fittings
• Vehicle (car)
• Vehicle (Others)
• Office Equipment
• Computers and its accessories

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.44
UK Pound	1	Rs.98.15
Euro	1	Rs.77.38

INFORMATION DETAILS

Information Gathered by :	DPA
Analysis Done by :	SUB
Report Prepared by :	JYTK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	NO
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		28

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.